Morgan Stanley top convertibles underwriter year to date

* Convertibles issuance totals $7.95 billion year to date

New York, March 31 - Morgan Stanley kept its place as the number one underwriter of convertibles, taking the top spot for the first quarter, according to data compiled by Prospect News.

Morgan Stanley was also first for January, February and all of 2004.

However Citigroup was first for March, largely thanks to its role as bookrunner for Vornado Realty Trust's $500 million offering of exchangeable debentures.

Issuance picked up from the highly depressed rate seen in the first two months of the year but still remained well below year-ago levels.

At $7.95 billion for 2005 so far, new deal volume is a mere 40% of the $20.02 billion level at the same point in 2004.

However, thanks to a surge in issuance of synthetics by investment banks the number of deals for the year so far at 128 is actually higher than the 120 for the first quarter of 2004.

So far this year, synthetic issuance totals $953 million in 92 deals.

March's issuance of all convertibles was $3.16 billion, substantially better than February's $2.43 billion and January's $2.36 billion but still less than half the $7.72 billion for March 2004.

The Prospect News figures cover dollar-denominated deals offered in the United States as registered transactions or under Rule 144A. They include equity-linked deals issued by investment banks.

Year-to-date 2005, including investment bank exchangeables

2004 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	1.895	13	23.84%	1	3.483	25	17.40%
2	Citigroup	1.078	13	13.56%	2	2.500	14	12.49%
3	Goldman Sachs	0.815	20	10.25%	6	1.713	21	8.56%
4	Merrill Lynch	0.772	7	9.71%	4	1.966	12	9.82%
5	JPMorgan	0.657	7	8.27%	9	1.080	6	5.40%
6	CSFB	0.570	7	7.17%	10	0.969	5	4.84%
7	Deutsche Bank	0.510	5	6.41%	5	1.784	9	8.91%
8	Lehman	0.475	5	5.98%	3	2.471	13	12.34%
9	Banc of America	0.382	2	4.81%	8	1.263	8	6.31%
10	UBS	0.278	4	3.50%	7	1.525	4	7.62%
	Total	7.951	128	20.018	120
	Average size:	0.062	0.167
March 2005, including investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	0.858	8	27.19%	4	0.883	7	11.44%
2	Banc of America	0.382	2	12.12%	7	0.468	4	6.07%
3	Morgan Stanley	0.381	4	12.07%	1	1.668	9	21.60%
4	JPMorgan	0.347	3	11.01%	6	0.705	4	9.14%
5	Goldman Sachs	0.283	6	8.98%	2	1.078	9	13.97%
6	Deutsche Bank	0.260	2	8.24%	5	0.824	5	10.67%
7	UBS	0.180	2	5.70%	12	0.075	1	0.97%
8	Lehman	0.162	2	5.15%	8	0.417	5	5.40%
9	Merrill Lynch	0.155	2	4.91%	3	0.933	6	12.09%
10	CSFB	0.073	4	2.31%	9	0.315	3	4.08%
	Total	3.156	47	7.719	45
	Average size:	0.067	0.172
Year-to-date 2005, excluding investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	1.754	7	25.07%	1	3.282	15	17.94%
2	Citigroup	0.847	4	12.10%	5	1.635	10	8.94%
3	Merrill Lynch	0.767	6	10.96%	4	1.763	9	9.64%
4	JPMorgan	0.657	7	9.39%	9	1.080	6	5.91%
5	CSFB	0.567	4	8.10%	10	0.969	5	5.30%
6	Goldman Sachs	0.553	4	7.90%	6	1.609	8	8.80%
7	Deutsche Bank	0.510	5	7.29%	3	1.784	9	9.75%
8	Banc of America	0.382	2	5.46%	8	1.263	8	6.91%
9	UBS	0.278	4	3.97%	7	1.525	4	8.34%
10	Lehman	0.278	2	3.97%	2	2.213	5	12.10%
	Total	6.998	36	18.290	69
	Average size:	0.194	0.265
March 2005, excluding investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	0.775	3	28.24%	3	0.883	7	11.81%
2	Banc of America	0.382	2	13.94%	7	0.468	4	6.26%
3	JPMorgan	0.347	3	12.66%	6	0.705	4	9.43%
4	Morgan Stanley	0.332	2	12.11%	1	1.629	6	21.78%
5	Deutsche Bank	0.260	2	9.47%	5	0.824	5	11.01%
6	Goldman Sachs	0.200	1	7.29%	2	1.054	5	14.09%
7	UBS	0.180	2	6.56%	12	0.075	1	1.00%
8	Merrill Lynch	0.150	1	5.47%	4	0.880	4	11.76%
9	CSFB	0.070	1	2.55%	9	0.315	3	4.21%
10	Jefferies	0.027	1	0.97%	-	-	-	-
	Total	2.744	14	7.480	28
	Average size:	0.196	0.267
Prospect News Convertibles Underwriter Rankings

Criteria

* The tables include all underwritten dollar-denominated offerings sold in the United States as public or Rule 144A deals reported to Prospect News.

* Offerings are included in the time period in which they price.

* Amounts are based on the total sales price (face amount multiplied by the offering price). The full amount is credited to the bookrunner (or lead manager if no bookrunners). For multiple bookrunners (or lead managers), the total value is divided equally among all the firms.

* Each tranche is counted as a separate deal.

* Bonds are included that convert into the issuer's or another company's stock or the cash equivalent; bonds that convert into other bonds are excluded.

* Units made up of a bond and stock are included; units made up of a bond and warrants are excluded.

* Preferred issues are included using the same criteria as for bonds.

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